LIC increases market share over 73% as private insurers lag

12/07/2019
CNBC

Life Insurance Corporation of India (LIC) has increased its share of the insurance market in the country by 7 percent this year and now corners 73.2 percent of the industry.

Meanwhile, ICICI's market share slid 1.2 percent and HDFC Life’s share was down half a percentage point.

LIC has gained its 7 percent market share between January to June 2019 but its entire business should be analysed in two parts. One is its performance on market share and two, its performance on premium growth.

As far as market share data is concerned, all listed private life insurance companies have lost market share, while LIC has gained from their losses.

With regards to premium growth performance, the total premium for HDFC Life went up 21 percent in June. In the annual premium equivalent (APE), a more profitable and margin accretive business, HDFC Life has grown by 87 percent.

ICICI Prudential Life Insurance's total premium is up 21 percent with strong growth in APE as well. Similar story follows for listed private insurance companies.

LIC has grown in terms of group business whereas private players have grown more in terms of individual business.